Brinker International (EAT) investor relations material

Executive summary

• Q1 FY27 revenue was $1,475.6M, net income was $113.3M, and comparable sales rose 9.1%.

• Chili’s delivered its 22nd consecutive quarter of comparable-sales growth, helping offset weaker Maggiano’s results.

Financial highlights

• Revenue rose to $1,475.6M from $1,349.2M; operating income was $151.0M versus $117.9M.

• Diluted EPS was $2.64 versus $2.17; adjusted diluted EPS was $2.77 versus $1.93, up 44%.

• Adjusted EBITDA was $209.1M versus $172.4M; adjusted restaurant operating margin was $258.0M versus $215.8M.

• Operating cash flow was $169.1M versus $120.8M; non-GAAP free cash flow was $105.7M versus $62.2M.

• Food and beverage costs were 25.9% of sales, restaurant labor 31.4%, and restaurant expenses 25.0%; food costs were 0.1% unfavorable as a share of sales.

Outlook and guidance

• FY27 guidance increased to revenue of $6.23B–$6.33B from $6.15B–$6.27B and adjusted diluted EPS of $13.30–$13.90 from $12.60–$13.40; weighted average shares are 42M–43M.

• FY27 restaurant-level margin improvement is expected at 70–90 bps, including ~30 bps from the 53rd week; Q2 is expected roughly flat, Q3 up 20–40 bps, with more Q4 upside.

• Q2–Q4 same-store sales are expected in the mid-single digits with positive traffic; Q2 started at a high mid-single-digit pace.

• The 53rd week is expected to add ~2% to revenue and $0.70 to adjusted EPS; FY27 capex guidance is $265M–$285M.